Effects of Coronavirus (COVID-19) On Entertainment & Tourism Industry

[Parkscope Joe]

I feel like for things to come back there has to be SOME improvement in ‘21. Not a return to ‘19, just better than ‘20.

That's not the point I'm trying to make. Cast (and behind the scenes) of a show that's already build, staged, costumed, etc is way cheaper to bring back up than many peopel on here think. PLUS things like Hoop rake in the cash. This is a situation where a lot of these experiences just cannot be run in a way that's practical for Disney right now.

 

[RevFreako]

I feel that IF there’s gradual improvement in 2021, then perhaps that experience can. Once again, though, part of me wonders if the “pre-Covid normal” is even worth going back to, considering it led to...well, Covid.

Before the news last night I was feeling pretty hopeful.

Don't get me twisted -- I very much want to be wrong. I just don't think I am, based on present info, and subject to change.

 

[Grabnar]

The pre-COVID normal or something ridiculously close to it will return because literally everyone in the world will want it to return

Well, if other industries are any indication; based off of the nylon orders my company is getting we're already well on this path. Based off of the DJIA today I suspect we'll crash again early next year but for now execs are optimistic.

 

[JoeCamel]

Just saw the equity statement on Disney. That is only 720 people! Think how sweeping it feels and extrapolate that to 28000 people. The pain has just begun, my heart is with all and the thousands of others this trickles down to.

 

[OhHaiInternet95]

Well, if other industries are any indication; based off of the nylon orders my company is getting we're already well on this path. Based off of the DJIA today I suspect we'll crash again early next year but for now execs are optimistic.

Well, good that people are ordering masks.

 

[Grabnar]

Well, good that people are ordering masks.

We do more than masks, that's just our newest line. Most of our nylon ends up in wiring for automotive/industrial applications. We make most of the wire coatings in every Tesla. Our order numbers tend to be a leading indicator for how the economy as a whole is doing, so I'll let you guys know if things look like they're dropping again.

 

[OLSinFLA]

My uderstanding (and I could be wrong, but just from working on DISASTER!) Equity will ok non-union work so long as the contract guarentees equal or higher requirements than the union contract. They will usually be OK with that. Its when you take any job that it runs into trouble.

 

[Scott W.]

We do more than masks, that's just our newest line. Most of our nylon ends up in wiring for automotive/industrial applications. We make most of the wire coatings in every Tesla. Our order numbers tend to be a leading indicator for how the economy as a whole is doing, so I'll let you guys know if things look like they're dropping again.

If this pandemic had a beginning, a middle and end , I suspect that we’re in the end of the middle. Once a vaccine is out, we’re into the beginning of the end and hopefully things will start to return to normal as confidence returns.

 

[Grabnar]

If this pandemic had a beginning, a middle and end , I suspect that we’re in the end of the middle. Once a vaccine is out, we’re into the beginning of the end and hopefully things will start to return to normal as confidence returns.

I think actual health impacts yes, but this is the early stages of the economic fallout, especially in the entertainment and tourism sectors.

 

[SeventyOne]

The pre-COVID normal or something ridiculously close to it will return because literally everyone in the world will want it to return

A non-theme park example: every 24/7 Wal-Mart is down to 7 - 10, at most. Most if not all will not be 24 hours in the foreseeable future. Here's the thing, Wally World was looking to do this 2 years ago. COVID just gave them the cover.

I don't know how you can look at WDW over the past 5 years and not think that, yeah, this is partially cutting costs to survive, but also quite a few higher-ups think Entertainment is an unnecessary expense. "Instead of roaming characters, we'll just teach the store clerks to say 'Bright Suns!'." Attendance was in decline back in 2019--we were probably going to get some of these cuts even without COVID. But the pandemic gives them a fig leaf. In 3 to 5 years when Hoop if a foamhead-only Woody's Round-Up, the band-aid was ripped off long ago.

How can Disney justify still charging full price admission?

To me the real question is the hotel rooms. Who is spending $600 a night with the parks in the shape they are in and most of the signature restaurants closed? Even if you limit the deep discount to APs, you'd build brand loyalty you've spend the past 9 months tearing down. It truly feels like they are doing the bare minimum to keep Grand and DAKL open just so they don't have to start breaking DVC contracts.

 

[JungleSkip]

I don't know how you can look at WDW over the past 5 years and not think that, yeah, this is partially cutting costs to survive, but also quite a few higher-ups think Entertainment is an unnecessary expense. "Instead of roaming characters, we'll just teach the store clerks to say 'Bright Suns!'." Attendance was in decline back in 2019--we were probably going to get some of these cuts even without COVID. But the pandemic gives them a fig leaf. In 3 to 5 years when Hoop if a foamhead-only Woody's Round-Up, the band-aid was ripped off long ago.

I just don't see it. When the crowds come back, and they will, they're going to need stuff to do. And not having these shows just isn't gonna cut it. And Hoop rakes in the cash in a way that kind of show won't. I'm cynical about park leadership, but I just don't think they'll be able to get away with it. Not after all this

 

[Scott W.]

I think actual health impacts yes, but this is the early stages of the economic fallout, especially in the entertainment and tourism sectors.

Unfortunately in situations like these, the biggest companies are always the last to fall. I had kind of hoped at the beginning of this that it would be a quick bounce back but it’s going to take a long time.

A non-theme park example: every 24/7 Wal-Mart is down to 7 - 10, at most. Most if not all will not be 24 hours in the foreseeable future. Here's the thing, Wally World was looking to do this 2 years ago. COVID just gave them the cover.

I don't know how you can look at WDW over the past 5 years and not think that, yeah, this is partially cutting costs to survive, but also quite a few higher-ups think Entertainment is an unnecessary expense. "Instead of roaming characters, we'll just teach the store clerks to say 'Bright Suns!'." Attendance was in decline back in 2019--we were probably going to get some of these cuts even without COVID. But the pandemic gives them a fig leaf. In 3 to 5 years when Hoop if a foamhead-only Woody's Round-Up, the band-aid was ripped off long ago.



To me the real question is the hotel rooms. Who is spending $600 a night with the parks in the shape they are in and most of the signature restaurants closed? Even if you limit the deep discount to APs, you'd build brand loyalty you've spend the past 9 months tearing down. It truly feels like they are doing the bare minimum to keep Grand and DAKL open just so they don't have to start breaking DVC contracts.

Rich people is the short answer. The kind of people who have plenty of spare time and don’t ever look at the price tag. There’s always going to be people looking to go to the most magical place on earth.

In other news:

Disneyland Paris to Close October 30th for Nationwide Lockdown

Walt Disney World news, photos, and reviews! We provide you with daily news from the Walt Disney World theme parks and beyond

blogmickey.com

 

[Mad Dog]

Disney has made my mid to late 2019 theme park vacation decisions, 'if and when' the vaccines settle covid down, very easy. Between pain in the butt reservations required, and cutting of nearly all entertainment,
Disney is 100% out of the picture, and it's Universal for sure, as long as they don't do the same as Disney. I don't vacation at onsite hotels/parks just for the rides. I want high level entertainment to diversify and enhance my experience.

 

[darkridelover]

The fact is Disney has more than enough money to weather this storm without letting go of all these people, but the stock market wouldn't be happy. So Disney chose money over people and I will never forget it. Especially since the executives just went back to 100% pay. Bob iger makes 47 million a year, money that he'll never need and never use. It would cost less than that to keep cast members furloughed and bring them back when we get on the other side. It's inexcusable.

 

[Grabnar]

Just napkin math but assuming that everyone made FL's minimum wage and were full time the 28,000 layoffs are a "savings" of around $500M for Disney. That's just raw wages, not counting healthcare or anything else.

I can see why it would be attractive, but at the same time a company the size of Disney should have a rainy day fund that could cover expenses. If individuals have to keep a 8-12 month emergency fund without taking credit then corporations should too.

 

[Cup_Of_Coffee]

The fact is Disney has more than enough money to weather this storm without letting go of all these people, but the stock market wouldn't be happy. So Disney chose money over people and I will never forget it. Especially since the executives just went back to 100% pay. Bob iger makes 47 million a year, money that he'll never need and never use. It would cost less than that to keep cast members furloughed and bring them back when we get on the other side. It's inexcusable.

I can’t speak to the math about furloughed cast members, but my lord why do these Execs need 100% of their pay? Good to know I’ll be able to sleep at night knowing Bob Chapek is making his millions. It’s just disgusting and inexcusable. It’s not like this is their first year ever making this kind of money, they’re literally fine.

 

[vgp]

The fact is Disney has more than enough money to weather this storm without letting go of all these people, but the stock market wouldn't be happy. So Disney chose money over people and I will never forget it. Especially since the executives just went back to 100% pay. Bob iger makes 47 million a year, money that he'll never need and never use. It would cost less than that to keep cast members furloughed and bring them back when we get on the other side. It's inexcusable.

Unfortunately, it's the vicious cycle of publicly-traded companies. If the CEO "does the right thing" and keeps all employees on board, and the stock price drops $20 because of reduced earnings, then the board of directors gets rid of that CEO and puts a new one in (or conversely, if the board agrees and does the right thing, the share/stakeholders all vote them out); same thing if they draw on available cash to pay employees instead of paying them out as dividends. I think a lot of people up the chain truly want to do the right thing for the employees, and perhaps even at the top itself, but at the end of the day the board's job is to maximize the stock price and their evaluations aren't done by the employees, but instead the shareholders.

It sucks. But it's also how a lot of companies were able to grow to the size and become what they've become in the first place. This will quickly veer off into politics if we discuss how to break that cycle.

 

[JoeCamel]

A non-theme park example: every 24/7 Wal-Mart is down to 7 - 10, at most. Most if not all will not be 24 hours in the foreseeable future. Here's the thing, Wally World was looking to do this 2 years ago. COVID just gave them the cover.

Wally is using the downtime to grind/polish the floors and repaint the stores. They installed new gondolas an re-arranged the aisles to the point I am struggling to find anything in the same place it was before.
Modern horror story for me but minor, at least they are using their windfall to spruce up the plant.
If anyone knows who is doing the floors I have a garage I want to do......

 

[Mad Dog]

Wally is using the downtime to grind/polish the floors and repaint the stores. They installed new gondolas an re-arranged the aisles to the point I am struggling to find anything in the same place it was before.
Modern horror story for me but minor, at least they are using their windfall to spruce up the plant.
If anyone knows who is doing the floors I have a garage I want to do......

Now, if Walmart could only do a better job on dressing some of their customers..... .....back to Equity layoffs. I guess Equity is saying 720 of the 780 on Disney's payroll are being laid off. 60 Equity employees
through 4 parks sure doesn't stretch very far. And it seems like they'll only have the right of recall through the end of 2021 according to what I've read on Disney forums. Those forums are, understandably, very abuzz over this.

 

[shiekra38]

And it seems like they'll only have the right of recall through the end of 2021 according to what I've read on Disney forums. Those forums are, understandably, very abuzz over this.

Almost like they're theme park fan sites or something